A day after the Supreme Court suggested that SFIO could help banks in recovering bad loans, the government on Thursday said it would look into the possibility of engaging the corporate fraud probing body to deal with the menace of non-performing assets. This was revealed by Sri R. Bandyopadhyay, Secretary, Corporate Affairs.
The Serious Fraud Investigation Office (SFIO) is under the administrative control of the Corporate Affairs Ministry, and is being readied to become an investigation body at par with the CBI and the Enforcement Directorate.
SFIO has the mandate of taking up investigations that relate to company law violations.
On 18.08.2010, a bench comprising Justice J M Panchal and Justice A K Patnaik suggested involving SFIO for NPA recovery while disposing of a 12-year-old PIL filed by city-based NGO Common Cause.
The PIL wanted the apex Court to direct the government to take stern action to recover bad loans from private sector companies and take steps to prevent the piling up of NPAs.
According to the government, gross NPAs of the commercial banks amounted to Rs 81,813 crore at on March 31, 2010.
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